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REUTERS/Amr Alfiky/File Photo Acquire Licensing RightsNEW YORK, Sept 21 (Reuters) - A U.S. judge on Thursday restricted Sam Bankman-Fried's ability to call expert witnesses to testify at his criminal fraud trial, in a blow to the FTX cryptocurrency exchange founder. But in a written order, U.S. District Judge Lewis Kaplan said three proposed witnesses cannot take the stand, because their testimony was irrelevant or could confuse the jury. He also said Bankman-Fried may seek to call the remaining four experts, but only to rebut prosecution witnesses. Among the witnesses Kaplan rejected was Peter Vinella, a consultant who intended to testify about "FTX's use of widely-accepted practices in the financial services industry." It is common in U.S. criminal trials for prosecutors and defendants to call experts to help jurors understand complex issues.

Persons: Sam Bankman, Fried, Amr Alfiky, District Judge Lewis Kaplan, Kaplan, Peter Vinella, Lawrence Akka, Luc Cohen, Daniel Wallis Organizations: United, REUTERS, Alameda Research, District, Prosecutors, Alameda, Thomson Locations: New York City, U.S, Alameda, Bankman, New York

☆ Bank of England ends run of 14 straight interest rate hikes after cooler-than-expected inflation
▼ + stars: | 2023-09-21 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

A passageway near the Bank of England (BOE) in the City of London, U.K., on Thursday, March 18, 2021. LONDON — The Bank of England on Thursday ended a run of 14 straight interest rate hikes after new data showed inflation is now running below expectations. Investors on Wednesday ramped up bets that the Bank would pause its interest rate hiking cycle after U.K. inflation came in significantly below expectations for August. Thomas Verbraken, executive director of risk management research at MSCI, said the burning question is whether the Bank of England's Thursday decision signals the peak of the interest rate cycle. Forward looking indicators suggest the U.K. economy is already flirting with recession, a backdrop consistent with cooling wage growth and a policy pivot," Mehdi said.

Persons: BOE, Andrew Bailey, We'll, Marcus Brookes, BoE, Brookes, Thomas Verbraken, Hussain Mehdi, Mehdi Organizations: Bank of England, City of, LONDON, Bank, U.S, Monetary, MPC, Quilter Investors, U.S . Federal Reserve, Bank of England's, HSBC Asset Management, Bank of, Fed, European Central Bank Locations: City, City of London, Bank of England's

☆ Opinion: Why we’re seeing so many deadly floods
▼ + stars: | 2023-09-21 | by ( Jessica Chia | Opinion Adam H. Sobel | ) edition.cnn.com time to read: +6 min

Is this climate change, or just a particularly severe bunch of weather flukes happening in close succession due to the climate’s own natural variability? But climate change acts by loading the dice on many types of weather events. That shouldn’t be comforting; climate change could be playing a larger role than we expect in many of these events. Even without climate change, it would behoove us to catch up on their maintenance, or, where these dams are no longer truly needed, remove them. What we know about climate change and extreme weather should strengthen that motivation; what we don’t know should strengthen it even more.

Persons: Adam H, Sobel, Columbia University’s Lamont, Adam Sobel Danny Goldfield, Daniel, it’s, El Niño, El Niños, El Organizations: Columbia, Fu Foundation School of Engineering, Applied, Twitter, CNN, Humanitarian Affairs, El Locations: Massachusetts, Hong Kong, Greece, Spain, Libya, El, Europe

☆ Stocks stalled as oil surge sets stage for longer US rate peak
▼ + stars: | 2023-09-20 | by ( Tom Westbrook | ) www.reuters.com time to read: +4 min

But at $93.52 a barrel, prices remain up 30% in three months as Saudi Arabia and Russia reduce output. Benchmark 10-year Treasury yields had hit their highest since 2007 at 4.371% overnight and were last at 4.36%. The yen is down 11% on the dollar this year as expectations firm for U.S. rates to stay high and Japanese rates to stay low. The yen hit a 10-month trough of 147.95 to the dollar late last week and it traded at 147.85 on Wednesday. Rising yields have kept a lid on gold prices, with spot gold last trading at $1,929 an ounce.

Persons: Brent, Stocks, Jerome, Sam Rines, Powell presser, Masato Kanda, Eugene Low, Miral Fahmy, Jamie Freed Organizations: Federal Reserve, Brent, FTSE, Japan's Nikkei, Bank of, New Zealand, Thomson Locations: SINGAPORE, Asia, Saudi Arabia, Russia, Pacific, Japan, Hong Kong, China, Texas, Sweden, Switzerland, Norway, Britain, U.S, Singapore, Australia, Argentina

[1/2] 3D printed clouds and figurines are seen in front of the Oracle cloud service logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsTORONTO, Sept 19 (Reuters) - Oracle (ORCL.N) is ready to cater to Canadian banks for their open banking needs and provide tools as needed when the country make its available, a financial services executive with the cloud computing giant said. "We are open banking ready," Sonny Singh, executive vice president of Oracle Financial Services said in an interview. Oracle's suite of financial products - used in 140 countries, billing and managing $500 billion in revenue - includes purpose-built products for financial services from financial crime, compliance applications and risk management. Oracle already counts some Canadian banks as clients for one or many of its services, that includes cloud to enterprise applications.

Persons: Dado Ruvic, Sonny Singh, Singh, Nivedita Balu, Marguerita Choy Organizations: Oracle, REUTERS, Rights, Oracle Financial Services, SIBOS, Amazon Web Services, Google, Thomson Locations: Canada, Toronto, Australia, Britain

☆ Stocks struggle as oil surge sets stage for hawkish Fed
▼ + stars: | 2023-09-20 | by ( Tom Westbrook | ) www.reuters.com time to read: +4 min

Higher energy costs led to a bigger-than-expected spike in Canadian inflation, overnight data showed, lifting the loonie and triggering selling in the Treasury market. Benchmark 10-year Treasury yields hit their highest since 2007 at 4.371% overnight and were last at 4.36%. The Fed meeting leads a week jammed with central bank meetings and data over the next few days. British inflation figures are due on Wednesday, followed by central bank meetings in Sweden, Switzerland, Norway, Britain and Japan on Thursday. Rising yields have kept a lid on gold prices, with spot gold last trading at $1,929 an ounce.

Persons: Brent, presser, Jerome Powell's, Sam Rines, Powell presser, Masato Kanda, Kristina Clifton, Miral Organizations: Treasury, Federal Reserve, Brent, Nikkei, U.S, STERLING, OF CPI, Bank of, New Zealand, Commonwealth Bank of Australia, Bank of England, Thomson Locations: presser China, SINGAPORE, Saudi Arabia, Russia, Asia, Pacific, Japan, Texas, Sweden, Switzerland, Norway, Britain, U.S, China, Australia, Argentina

[1/2] 3D printed clouds and figurines are seen in front of the Oracle cloud service logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsCompanies Oracle Corp FollowTORONTO, Sept 19 (Reuters) - Oracle (ORCL.N) is ready to cater to Canadian banks for their open banking needs and provide tools as needed when the country make its available, a financial services executive with the cloud computing giant said. "We are open banking ready," Sonny Singh, executive vice president of Oracle Financial Services said in an interview. Oracle's suite of financial products - used in 140 countries, billing and managing $500 billion in revenue - includes purpose-built products for financial services from financial crime, compliance applications and risk management. Oracle already counts some Canadian banks as clients for one or many of its services, that includes cloud to enterprise applications.

Persons: Dado Ruvic, Sonny Singh, Singh, Nivedita Balu, Marguerita Choy Organizations: Oracle, REUTERS, Oracle Corp, Oracle Financial Services, SIBOS, Thomson Locations: Canada, Toronto, Australia, Britain

☆ Biden plans to work with world leaders to ensure AI's use as a tool of 'opportunity'
▼ + stars: | 2023-09-19 | by ( Lauren Feiner | ) www.cnbc.com time to read: +2 min

"Emerging technologies such as artificial intelligence hold both enormous potential and enormous peril," Biden said at the U.N. on Tuesday. "We need to be sure they're used as tools of opportunity, not as weapons of oppression. The discussion is taking place with the backdrop of an intense competition with China, which is also seeking to be a world leader in the technology. In the meantime, several agencies have asserted their ability to rein in the abuses of AI with existing legal power. The Biden administration has also secured voluntary commitments from leading AI companies to test their tools for security before they release them to the public.

Persons: Joe Biden, Biden, Chuck Schumer, Elon Musk, Mark Zuckerberg, Schumer, Jeffrey Sachs Organizations: United Nations General Assembly, European Union, National Institute of Standards, Technology, U.S . Department of Commerce Locations: United States, U.S, China, Russia

☆ Sam Bankman-Fried to argue for release from NY jail two weeks before trial
▼ + stars: | 2023-09-19 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +2 min

This included his sharing the personal writings of Caroline Ellison, the former chief executive of his Alameda Research hedge fund, with a New York Times reporter. Ellison has pleaded guilty to fraud and is expected to testify against Bankman-Fried, a former romantic partner. Bankman-Fried faces seven charges of fraud and conspiracy stemming from the November 2022 collapse of his now-bankrupt company. Prosecutors countered in court papers that Bankman-Fried sought to use the Times as a "mouthpiece for discrediting a government witness shortly before trial." They also said Bankman-Fried has had no more difficulty preparing for trial than any other detainee.

Persons: Sam Bankman, District Judge Lewis Kaplan, Bankman, Caroline Ellison, Ellison, Fried, jailing, Kaplan, Luc Cohen, Will Dunham Organizations: Manhattan U.S, U.S, Circuit, District, Alameda Research, New York Times, Bankman, Prosecutors, Alameda, Thomson Locations: Brooklyn, Alameda, New York

"We are negatively surprised by lack of revenue growth, increased capital target, payout & ROTE cut, and by the lack of details," Jefferies analysts said in a note. It also said its new targets were based on annual revenue growth expectations between zero and 2% between 2022 and 2026, but that it would aim to improve its cost-to-income ratio. A SocGen veteran and former head of its investment bank, Krupa said he would streamline the bank's activities but didn't elaborate. The share price decline put SocGen on course for the biggest one-day drop since March. "It will take time for the shares to discount the cost improvement given SG's mixed track record," they said.

Persons: Gonzalo Fuentes, Krupa, Slawomir Krupa, SocGen, JP Morgan, Tassilo Hummel, Silvia Aloisi, Elisa Martinuzzi, Michal Alexandrowicz, Mathieu Rosemain, Ingrid Melander, Mark Potter Organizations: Societe Generale, La Defense, REUTERS, BNP, Jefferies, Thomson Locations: La, Paris, France, Russia

☆ SocGen's new boss Krupa pledges to cut costs to boost profits by 2026
▼ + stars: | 2023-09-18 | by ( ) www.cnbc.com time to read: +2 min

Societe Generale's new CEO Slawomir Krupa pledged on Monday to cut costs to boost profits by 2026 amid stagnating sales, in his first strategic plan for France's third-biggest listed bank. SocGen said it would target a 9 to 10% return on tangible equity ratio (ROTE) in 2026, up from a reported 5.6% ROTE at the end of June. The bank also said that it would reduce its exposure to upstream oil and gas businesses by 80% by 2030 when compared to 2019. SocGen said its new targets were based on annual revenue growth expectations between 0 and 2% by 2026. SocGen is also open to a sale of its equipment finance unit, sources have told Reuters.

Persons: Slawomir Krupa, Krupa, ambitioned, SocGen Organizations: Generale's, Basel Committee, Reuters, Finance, BNP Locations: Basel, Russia, Ukraine

☆ Wall Street banks shed jobs to ease cost pressures
▼ + stars: | 2023-09-15 | by ( ) www.reuters.com time to read: +2 min

Morning commuters walk on Wall Street in New York's financial district October 30, 2014. Others, like Citigroup (C.N), are preparing to cut jobs as part of a structural revamp targeted to remove complexity. It also laid off nearly 1,000 employees from First Republic Bank, the collapsed lender it had acquired from the Federal Deposit Insurance Corp. The bank laid off about 3,200 people earlier this year in its biggest headcount reduction since the 2008 financial crisis. Lazard (LAZ.N) -The New York-based investment bank said it would cut around 10% of its workforce in 2023.

Persons: Brendan McDermid, Goldman Sachs, Morgan Stanley, JPMorgan Chase, Wells Fargo, Wells, Mike Santomassimo, Santomassimo, Charles Schwab, Lazard, Jaiveer Singh, Maju Samuel Organizations: REUTERS, Banking, Citigroup, JPMorgan, First Republic Bank, Federal Deposit Insurance Corp, Reuters, Financial Times, Bloomberg News, Wall Street, UBS Group, Credit, Thomson Locations: New, U.S, New York, York, Bengaluru

☆ Sam Bankman-Fried said he was one of the 'most hated people in the world' in an unpublished Twitter thread written after he was arrested, report says
▼ + stars: | 2023-09-15 | by ( Tom Carter | ) www.businessinsider.com time to read: +3 min

Documents revealed by the New York Times shed light on Sam Bankman-Fried's mindset after his arrest. In a Twitter thread he never published, SBF called himself "one of the most hated people in the world." The documents also show Bankman-Fried blaming a lack of hedging by Caroline Ellison for Alameda's collapse. "I'm broke and wearing an ankle monitor and one of the most hated people in the world," Bankman-Fried wrote in an unpublished draft of a Twitter thread written after he was arrested late last year. The 250-pages of documents were shared with the New York Times by crypto influencer Tiffany Fong.

Persons: Sam Bankman, SBF, Caroline Ellison, Fried, I'm, Tiffany Fong, Katy Perry, Rihanna, Sam Trabucco, Trabucco, FTX, Ellison Organizations: New York Times, Service, Alameda Hedge Fund, Times, Alameda, Bankman Locations: Wall, Silicon, Alameda, Brooklyn

LONDON, Sept 15 (Reuters) - Kristine Braden, CEO of Citigroup's main operations in continental Europe, is leaving the firm after 25 years as part of a wider organisational change announced by the U.S. bank earlier this week, according to an internal memo seen by Reuters. Braden was CEO of Citibank Europe and previously held a number of senior roles, including leading the Citigroup Global Markets Europe AG unit. The Wall Street firm this week announced a broad reorganization including stripping out a layer of management and cutting jobs to give CEO Jane Fraser more direct control as she seeks to simplify the structure and give a boost to the stock. Following the announcement of the reorganization, Citi managers are already convening discussions with employees about potential layoffs, which will most likely affect support staff in compliance and risk management, a source familiar with the situation told Reuters on Thursday. Reporting by Anousha Sakoui and Andres Gonzalez Editing by Elisa Martinuzzi, Dhara Ranasinghe and Mark PotterOur Standards: The Thomson Reuters Trust Principles.

Persons: Kristine Braden, Braden, Braden couldn't, Jane Fraser, Anousha Sakoui, Andres Gonzalez, Elisa Martinuzzi, Dhara Ranasinghe, Mark Potter Organizations: Reuters, Citibank Europe, Citigroup Global, Citi, Thomson Locations: Europe, U.S

CAIRO (AP) — Libyan authorities blocked civilians from entering the flood-stricken eastern city of Derna on Friday so search teams could look through the mud and wrecked buildings for 10,100 people still missing after the known toll rose to 11,300 dead. The Libyan Red Crescent said as of Thursday that 11,300 people in Derna had died and another 10,100 were reported missing. Abduljaleel said rescue teams were searching wrecked buildings in the city center and divers were combing the sea off Derna. Soon after the storm hit the city Sunday night, residents said they heard loud explosions when the dams outside the city collapsed. Floodwaters gushed down Wadi Derna, a valley that cuts through the city, crashing through buildings and washing people out to sea.

Persons: Derna, Salam, Daniel, Othman Abduljaleel, Abduljaleel, Lori Hieber Girardet, Khalifa Hiftar, —, Jack Jeffery, Jamey Keaten Organizations: —, Ambulance, Emergency Service, Associated Press, Libyan Locations: CAIRO, Derna, Libya, Libya's, Libyan, London, Geneva

What they likely won't be changing: Keeping one more rate hike on the table. Given that rosier picture, Luzzetti - like most analysts polled by Reuters - says Fed policymakers probably won't lift the policy rate any further. Many other economists also expect Fed policymakers to signal fewer rate cuts next year. That's only a touch higher than the 3.2% rate the Fed had expected to see at the end of this year. Reuters GraphicsIf progress towards the Fed's 2% goal slows next year though, as many economists forecast, that may mean fewer interest rate cuts next year.

Persons: Sarah Silbiger, won't, Matthew Luzzetti, Luzzetti, Tim Duy, Duy, That's, Loretta Mester, Kathy Bostjancic, Ann Saphir, Dan Burns, Andrea Ricci Organizations: Eccles Federal Reserve, Washington , D.C, REUTERS, Federal Reserve, Deutsche Bank, Reuters, Reuters Graphics Reuters, U.S, Fed, Cleveland Fed, Thomson Locations: Washington ,, U.S, China

☆ Many Boards Are Playing Catch-Up on ESG and Green Issues
▼ + stars: | 2023-09-14 | by ( Rob Sloan | ) www.wsj.com time to read: +9 min

Other findings were that most believed sustainability efforts had brought real benefits and said ESG engagement with investors had been mostly positive. They also reported that while about half of big companies had ESG targets—many linked to executive compensation—smaller, private companies lagged behind. For public companies investors were most influential, followed by regulators, while directors of private businesses ranked their customers as top with investors in second place. “You had a wind that was giving companies and boards energy, and now you have a countervailing wind of political backlash,” Smith said. Despite those changes, half of respondents believe ESG will continue to be an important driver of their business decisions and strategy.

Persons: aren’t, —, ”, Kristin Campbell, Campbell, “, Alan Smith —, Smith, ” Hilton’s Campbell, ” Smith, ESG, ” Campbell, — hadn’t, Rob Sloan Organizations: Pro, National Association of Corporate, ESG, Hilton Worldwide Holdings, Regency Centers, HSBC, Estates, Sustainable Business, rob.sloan@wsj.com Locations: U.S

A view of the exterior of the Citibank corporate headquarters in New York, New York, U.S. May 20, 2015. Technology staff working on overlapping functions are also at risk of being laid off, one of the people said. "Simplifying the organization will also advance the execution of Citi's transformation, the firm's top priority," the company said in a statement on Wednesday. Citigroup has invested heavily in recent years in technology systems to increase risk controls and compliance to address the consent order, one of the sources said. But the company still employs many people with overlapping functions and redundant technology systems, one of the sources said.

Persons: Mike Segar, Jane Fraser, Moody's, Peter Nerby, Fraser, Tatiana Bautzer, Saeed Azhar, Lananh Nguyen, Leslie Adler Organizations: Citibank, REUTERS, Citigroup, Technology, Citi, Bank of America, Wells, Thomson Locations: New York , New York, U.S, North America

☆ Singapore c.bank bars 3AC founders from market activity
▼ + stars: | 2023-09-14 | by ( Chen Lin | ) www.reuters.com time to read: +1 min

A view of the Monetary Authority of Singapore's headquarters in Singapore June 28, 2017. REUTERS/Darren Whiteside/File Photo Acquire Licensing RightsSINGAPORE, Sept 14 (Reuters) - Singapore's central bank said on Thursday it has barred the founders of bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) from market activity in the city-state for nine years. The Monetary Authority of Singapore (MAS) said in a statement it had issued orders, which, effective from Sept 13, prohibit 3AC founder Zhu Su and Kyle Livingston Davies from performing any regulated activity and from managing any capital market services firms in Singapore. "Senior management of fund managers are required to implement robust risk management measures to protect the interest of investors," Loo Siew Yee, MAS Assistant Managing Director said. Representatives for Zhu and Davies could not immediately be reached for comment.

Persons: Darren Whiteside, cryptocurrencies Luna, TerraUSD, Zhu Su, Kyle Livingston Davies, Loo Siew Yee, Zhu, Davies, Kanupriya Kapoor Organizations: Monetary Authority, REUTERS, Rights, Arrows, British Virgin Islands, Monetary Authority of Singapore, MAS, Thomson Locations: Singapore, Rights SINGAPORE, British Virgin

☆ From rolling out OpenAI's GPT-4 to employees to preventing $27 billion in fraud, Visa exec Rajat Taneja opens up about the payments giant's AI playbook
▼ + stars: | 2023-09-14 | by ( Bianca Chan | ) www.businessinsider.com time to read: +4 min

Visa relies on AI for mission-critical tasks like processing payments, detecting fraud, and securing its massive network infrastructure. It has more than 300 AI models that are live and operating. "AI is going to be a huge part of how we grow, but it'll also be part and parcel of everybody's work," Taneja said. Visa continues to experiment with similar AI models, like Meta's AI model Llama 2 and those from French-American company Hugging Face, Taneja said. Visa introduced AI models that ingest billions of data points every day to train on, learn patterns, and identify any cybersecurity or payment-security threats.

Persons: It's, Rajat Taneja, it'll, Taneja, it's, coder, counterfeits Organizations: Visa, Microsoft Locations: American

☆ Bank of England tells UK to hold insurers to account on infrastructure
▼ + stars: | 2023-09-13 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

A general view of the Bank of England (BoE) building, the BoE confirmed to raise interest rates to 1.75%, in London, Britain, August 4, 2022. REUTERS/Maja Smiejkowska/File Photo Acquire Licensing RightsCompanies Bank Of England FollowLONDON, Sept 13 (Reuters) - The government should check that insurers are spending up to 100 billion pounds ($125 billion) on Britain's economy after their capital rules were eased, Bank of England Deputy Governor Sam Woods said on Wednesday. "I think it may happen, but I can't guarantee it," Woods told a sub-committee of parliament's Treasury Select Committee. The finance ministry overrode the Bank of England to ease some capital rules more than Woods had wanted, which could make an insurance company failure more likely. This means insurers will have more money to invest, currently only a modest part of their portfolios is in infrastructure, Gerken said.

Persons: BoE, Maja Smiejkowska, Sam Woods, Woods, Charlotte Gerken, Gerken, Huw Jones, Alexander Smith Organizations: Bank of England, REUTERS, Bank, Association of, Thomson Locations: London, Britain

☆ JPMorgan's Jamie Dimon warns of recession and rate hikes, flags global dangers, and quotes Warren Buffett twice in a new interview. Here are the 8 best quotes.
▼ + stars: | 2023-09-12 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Dimon quoted Warren Buffett twice to flag the risks to banks and trumpet prudence in business. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. The billionaire banker and JPMorgan CEO also championed prudent risk management, and warned that more lenders could run into problems like Silicon Valley Bank did this spring. If you have that with a recession, yes, you're going to see a little bit more stress and strain in the system." (Dimon was referring to other banks getting caught out by rising interest rates like Silicon Valley Bank.)

Persons: Jamie Dimon, Dimon, Warren Buffett, headwinds, It's, we've, There's, Warren, — he's Organizations: Service, JPMorgan, Bank, Barclays, AlphaSense, Silicon Valley Bank Locations: Wall, Silicon, Ukraine, Silicon Valley

REUTERS/Evelyn Hockstein/File Photo Acquire Licensing RightsWASHINGTON, Sept 8 (Reuters) - The Federal Reserve's top regulatory official said on Friday the central bank is "a long way" from any decision on whether it would issue its own digital currency, and added it would not do so without official support in Washington. Fed Vice Chair for Supervision Michael Barr said while officials are investigating a central bank digital currency (CBDC), the Fed was far from any decision. "Of course, investigation and research are very different from decision-making about next steps in terms of payments system development, and we are a long way from that." Barr's comments echo those of Fed Chair Jerome Powell, who also has said the Fed would not move to issue a digital currency without explicit authorization from Congress. It is important to get the legislative and regulatory framework right before significant risks emerge," he said.

Persons: Michael Barr, Evelyn Hockstein, Barr, Jerome Powell, Pete Schroeder, Hugh Lawson, Andrea Ricci Organizations: Banking, Housing, Urban Affairs Committee, Capitol, REUTERS, Rights, Federal, U.S ., Thomson Locations: Washington , U.S, Washington, Philadelphia

☆ FDIC says it should have supervised First Republic more closely
▼ + stars: | 2023-09-08 | by ( Pete Schroeder | ) www.reuters.com time to read: +3 min

FILE PHOTO: A person walks past a First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. However, the FDIC added that its supervisors were too “generous” in gauging some of First Republic’s risks, notably around interest rates and uninsured deposits. First Republic was subsequently seized by the FDIC and most of its assets sold to JPMorgan Chase. Similarly, the FDIC found in its April post-mortem of the Signature failure that the agency lacked resources to properly supervise the bank as management pursued an overly aggressive growth strategy. “Both regulation and supervision must be strengthened,” said CEO Dennis Kelleher of Better Markets, a group favoring tougher regulation, in response to the report.

Persons: Mike Segar, “, Friday’s, ”, Dennis Kelleher Organizations: WASHINGTON, Federal Deposit Insurance Corp, Republic, First, First Republic Bank, REUTERS, FDIC, Silicon Valley Bank, JPMorgan Chase, Bank, Federal Reserve, Congress, Better Locations: First Republic, Midtown Manhattan, New York City , New York, U.S, California, Republic, Silicon, New York

☆ FDIC says supervisors could have been more aggressive before First Republic's failure
▼ + stars: | 2023-09-08 | by ( Pete Schroeder | ) www.reuters.com time to read: +2 min

FILE PHOTO: A person walks past a First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. However, it added bank supervisors were too “generous” in gauging some of its risks, notably around interest rates and a high level of uninsured deposits. First Republic’s collapse, which saw the bank seized by regulators and most of its assets sold to JPMorgan Chase, was the second largest bank failure in American history. It however said the bank likely would have been more resilient to the spreading panic had supervisors criticized bank management practices sooner. The FDIC ultimately found that its supervision team was timely in examining First Republic and producing its findings.

Persons: Mike Segar, JPMorgan Chase, “ Organizations: WASHINGTON, Republic, First, First Republic Bank, REUTERS, Deposit Insurance Corporation, Silicon Valley Bank, JPMorgan, FDIC Locations: U.S, First Republic, Midtown Manhattan, New York City , New York, Silicon, Washington

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